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![]() ![]() The advantages of SEM over regression analysis are discussed and these are grouped in four categories: (1) modeling of measurement errors and unexplained variances, (2) simultaneous testing of relationships, (3) ability to link micro and macro perspectives, and (4) best fitting model and theory development. The paper emphasizes that the proper application of SEM depends largely on theory, where every step in the analysis is based on theoretical reasoning. For the benefit of readers, the discussion is supported by an illustration of a theoretical model predicting residents’ support for tourism, developed on the premise of the social exchange theory. ![]() This involves the development of a theoretical model, testing of a confirmatory measurement model, and evaluating the structural model with hypothesized path relations. This paper explores the concept of structural equation modeling (SEM) and discusses the steps which researchers should follow when using this technique.
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